"Thomas Jefferson said a democracy is dependent on an informed citizenry. I don't care whether it sounds corny or not. It's the truth." -Jim Lehrer
Carefree Truth
Issue #1006, April 11, 2022
Issue #1006, April 11, 2022
Town Engineer Mark Milstone presented the Capital Improvement Plan (CIP) with the updates included and the costs severely reduced. There are 17 projects over the 5 year period, relatively evenly distributed. The Summary page shows a total of $25,514,000 over the 5 years, but what that sheet does not show is the revenue the Town will be receiving.
There will be almost $5,500,000 in funding from the Maricopa County Flood Control District, as well as roughly $5,500 in the later years from the Maricopa Association of Governments (MAG) for the Pima Road project, so the total out-of-pocket costs go down to about $19,500,000, which is roughly $3,900,000 per year. This does not do everything Carefree needs to get done, "but it's a darned good start for a Capital Improvement Program".
Mayor Les Peterson noted that this is a good way to formalize projects so none are lost, and priorities can be organized. 6 months ago, the Town would have been looking at very different prices for petroleum products and how high they might go, so the projects will always be shifting, but this gets the projects down on paper, and he felt it was an excellent start in this process. Mr. Milstone agreed. He said the only figures at are locked down are those for the first year. Projects beyond that can be shifted around.
Vice Mayor John Crane noted that there is always a fee for "fiscal impact" but it is never explained. Mr. Milstone explained, using the example of building a fire house. A full time staff would be needed to live in and run that fire house, and that's what those costs would cover. It is the operational costs.
Councilman Tony Geiger asked it included any costs associated with cost savings from the capital improvements, for a positive impact? Mr. Milstone replied that when there is dedicated funding for each year, only the first year is locked down. If projects came in lower in the following years, and the Town got funding for those projects, yes, that would be a savings.
Vice Mayor Crane noted that each department sets priorities for the different projects. How does the Council prioritize the different projects, relative to each other? Gary Neiss replied that would be done as part of the budgeting process at the workshops in mid-April. Part of that will be looking at the CIPs, as the Town does each year, which is not part of the Operational budget or the Capital budget. At that time, there will be an evaluation of what the priorities will be, and they will set those priorities in association with the budget process. The annual budget is the short term process. The long term process is the CIP, which occupies a 5 year window. Some communities look at a 10 year CIP, but that produces "fuzzy math", so Carefree looks at a 5 year horizon.
Councilman Stephen Hatcher noted that fire protection is a big line item. In 2022/23 $1,100,000 was budgeted. He asked if that was just a projection, since the Town's fire contract with Rural/Metro ends on June 30th. Mr. Neiss explained that Carefree is looking at a short term renewal that will bridge the Town through automatic aid.
The $1,100,000 plus an additional $400,000 the following year, is not the operational end. The operational contract is for labor and is separate. The depreciating asset withing the fire house is the fire truck. Automatic aid might require a brush truck and/or a timber truck. The items need to be negotiated and the standards need to be identified. Those standards will result in the actual costs of the hardware. So, these standards that haven't yet been identified are the placeholders at this point. In addition, there are opportunities for grants. Some grants have been identified for the purchase of equipment, and Carefree has applied for those grants. We'll see if we are successful. That will be part of the budget process. If there is grant money within the annual budget, that identifies what the Town is seeking.
Vice Mayor Crane said it is sensible to be looking towards the future because getting grants can take a long time. The application can be made now for something planned 3 years down the road. Mr. Hatcher asked how long grants take, and Mr. Neiss explained that it varies. It all depends on the respective grant.
Mayor Peterson thanked Mr. Milstone and Mr. Neiss for their excellent work. He noted that this is a very helpful tool.
https://vimeo.com/684830101
Lyn Hitchon
Prepared by Carefree Truth
Copyrighted
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list.
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There will be almost $5,500,000 in funding from the Maricopa County Flood Control District, as well as roughly $5,500 in the later years from the Maricopa Association of Governments (MAG) for the Pima Road project, so the total out-of-pocket costs go down to about $19,500,000, which is roughly $3,900,000 per year. This does not do everything Carefree needs to get done, "but it's a darned good start for a Capital Improvement Program".
Mayor Les Peterson noted that this is a good way to formalize projects so none are lost, and priorities can be organized. 6 months ago, the Town would have been looking at very different prices for petroleum products and how high they might go, so the projects will always be shifting, but this gets the projects down on paper, and he felt it was an excellent start in this process. Mr. Milstone agreed. He said the only figures at are locked down are those for the first year. Projects beyond that can be shifted around.
Vice Mayor John Crane noted that there is always a fee for "fiscal impact" but it is never explained. Mr. Milstone explained, using the example of building a fire house. A full time staff would be needed to live in and run that fire house, and that's what those costs would cover. It is the operational costs.
Councilman Tony Geiger asked it included any costs associated with cost savings from the capital improvements, for a positive impact? Mr. Milstone replied that when there is dedicated funding for each year, only the first year is locked down. If projects came in lower in the following years, and the Town got funding for those projects, yes, that would be a savings.
Vice Mayor Crane noted that each department sets priorities for the different projects. How does the Council prioritize the different projects, relative to each other? Gary Neiss replied that would be done as part of the budgeting process at the workshops in mid-April. Part of that will be looking at the CIPs, as the Town does each year, which is not part of the Operational budget or the Capital budget. At that time, there will be an evaluation of what the priorities will be, and they will set those priorities in association with the budget process. The annual budget is the short term process. The long term process is the CIP, which occupies a 5 year window. Some communities look at a 10 year CIP, but that produces "fuzzy math", so Carefree looks at a 5 year horizon.
Councilman Stephen Hatcher noted that fire protection is a big line item. In 2022/23 $1,100,000 was budgeted. He asked if that was just a projection, since the Town's fire contract with Rural/Metro ends on June 30th. Mr. Neiss explained that Carefree is looking at a short term renewal that will bridge the Town through automatic aid.
The $1,100,000 plus an additional $400,000 the following year, is not the operational end. The operational contract is for labor and is separate. The depreciating asset withing the fire house is the fire truck. Automatic aid might require a brush truck and/or a timber truck. The items need to be negotiated and the standards need to be identified. Those standards will result in the actual costs of the hardware. So, these standards that haven't yet been identified are the placeholders at this point. In addition, there are opportunities for grants. Some grants have been identified for the purchase of equipment, and Carefree has applied for those grants. We'll see if we are successful. That will be part of the budget process. If there is grant money within the annual budget, that identifies what the Town is seeking.
Vice Mayor Crane said it is sensible to be looking towards the future because getting grants can take a long time. The application can be made now for something planned 3 years down the road. Mr. Hatcher asked how long grants take, and Mr. Neiss explained that it varies. It all depends on the respective grant.
Mayor Peterson thanked Mr. Milstone and Mr. Neiss for their excellent work. He noted that this is a very helpful tool.
https://vimeo.com/684830101
Lyn Hitchon
Prepared by Carefree Truth
Copyrighted
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list.
Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.